Italy's Salvatore Ferragamo's revenue at $1.26 bn in FY23

08 Mar '24

2 min read

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Salvatore Ferragamo's revenues fell to €1.156 billion in FY23, down 7.6 per cent year-on-year, amid declines across retail and wholesale channels.
Despite a rise in gross profit margin to 72.6 per cent, operating profit dropped by 43.7 per cent to €72 million.
Geographically, sales fell in Asia Pacific and North America, but EMEA saw a 3.4 per cent increase.

Salvatore Ferragamo Group, a renowned Italian luxury goods company, has reported total revenues of €1.156 billion (approximately $1.26 billion) in fiscal 2023 (FY23), marking a 7.6 per cent decline at current exchange rates and an 8.1 per cent decline at constant exchange rates compared to fiscal FY22. This contraction was evident across both the retail and wholesale distribution channels, which saw consolidated net sales drop by 10.8 per cent and 12.2 per cent, respectively.

Despite the revenue slump, the group reported a gross profit margin increase to 72.6 per cent of revenues, up from 72 per cent in the previous year. However, operating profit (EBIT) plummeted by 43.7 per cent to €72 million (approximately $78.7 million), largely due to escalated investments in marketing and communication efforts. The gross operating profit (EBITDA) also saw a decrease, falling 15.8 per cent to €252 million (approximately $275.5 million).

Geographical performance varied, with the Asia Pacific region witnessing a 13.1 per cent decrease in net sales, albeit showing signs of recovery in the fourth quarter (Q4) of FY23 with a positive trend of 2.2 per cent at constant exchange rates. The Japanese market faced a 12.6 per cent decline in net sales over the year, with Q4 FY23 sales down by 6.5 per cent. Conversely, the Europe, Middle East, and Africa (EMEA) region bucked the trend with a 3.4 per cent increase in net sales. North America and Central and South America experienced significant sales declines of 19.3 per cent and 7.2 per cent, respectively, reflective of broader market softening and strategic perimeter reductions.

“In 2023 we made good progress in our strategic priorities in terms of brand, product, communication and network. We improved quality of sales and invested to strengthen the brand while driving engagement and we have seen some pleasing results from new products. The Fall-Winter ’24 Fashion Show held in February, along with the inauguration of the Milan women’s boutique under the new store concept, gained excellent resonance and visibility,” said Marco Gobbetti, chief executive officer and general manager.

Fibre2Fashion News Desk (DP)

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